Brazilian city Rio de Janeiro decided to invest 1% reserved funds in Bitcoin

The mayor of the Brazilian city Rio de Janeiro announced to invest some reserved funds in Bitcoin.

Bitcoin is getting huge Institutional investment besides retail investments. These increasing investments in Bitcoin are giving a direct indication that Bitcoin is going to reserve its position as the best asset in this crypto and non-crypto industry. This trend of adoption of Bitcoin is now increasing more rapidly after the support of El Salvador to adopt Bitcoin as legal tender. 

According to reports, the mayor of Brazilian city Rio de Janeiro, Eduardo Paes, planned a new initiative “Crypto Rio”. Under the initiative of “Crypto Rio”, the government will invest 1% of the reserved funds of Rio De Janeiro city in Bitcoin. And also under the Crypto Rio planning, they aimed to make the city hub of cryptocurrency and blockchain industry, local news media O Globo reported on Thursday. 

The Mayor of Rio talked about his ambition on Bitcoin in a panel with the Miami mayor and Bitcoin bull Francis Suarez in the panel. 

This is clearly showing that the mayor of Rio is highly influenced because of the initiative of Francis Suarez to accept his paychecks in Bitcoin. 

The mayor of Rio city reportedly stated: 

“We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play “

And with this, he also said that authorities of the city are planning to bring tax exemptions rules for the business to grow. 

Pedro Paulo, the city finance official of Brazil, also said that the government is planning to bring a rule for the businesses to pay funds in Bitcoin with a 10% tax discount. But for the same, they need to discuss the legal framework that can bring all these things into reality. 

Earlier in November 2021, Brazilian federal deputy Luizão Goulart proposed a legal framework to allow the payment systems in crypto assets for the public and private sector workers. 

Read also: 42% people believe 80% of 2035 transactions will happen in Bitcoin